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Procurement Strategies

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Ahmed Zayan

on 11 February 2014

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Transcript of Procurement Strategies

Procurement Strategies
Executive Summary
Introduction to Procurement
Roles within Procurement
Procurement Skills
Value Proposition
Trends & Challenges
Procurement at Novartis

Introduction to Procurement
Evolution in Procurement
What is Procurement ?

Responsible for delivering against the corporate objectives within budgeted targets

Trusted business partner that analyzes spend, identifies savings opportunities and assists the business in achieving savings

Provide analytical support and ensure the business is operating efficiently and effectively with proper documented controls

Traditional Procurement
-Securing stable suppliers
-Adhering to budgets
-Process compliance
-Price reduction
Spend Value Creation
-Internal process focus
-Demand Management

Strategic Procurement
-Category management
-Supplier rationalization
-Leveraging spend
What is Procurement ?
Introduction to Procurement
Introduction to Procurement
Roles within Procurement
Procurement Skills
Giles Breault, Novartis Global Head of Supplier Productivity & Business Services.
"Procurement has forced itself into a corner and must evolve quickly to survive. He believes that the recent success procurement has experienced risks undermining its position as a key corporate function. Procurement, he argues, must transform itself. And quickly"

Dr. Hugo Eckseler, twenty years as CPO and manager in manufacturing, logistics and quality at DHL and 3M
"In multi-national companies, CPOs must be true change managers who lead their organisations through difficult times"

Value Proposition
Value Proposition
Value Proposition
Value Proposition
Trends & Challenges
Procurement at Novartis
-Procurement Structure
-Responsible Procurement
-Global issues
- From cost focus to value focus

- From complications to managed complexity

- From unknown unknowns to strategic risk management

- From Data Analysis to Data Insight

- Sustainable Procurement

- leverage purchasing power

- Challenge incumbent vendors

- Optimize price and business needs

- Minimize open ended contracts

- leverage contract length

Procurement Skills
The Demand Management lever challenges the business needs to generate cost-reduction

Process improvement reduces acquisition costs and helps unlock value from otherlevers

Value Management delivers potential revenue growth and competitive advantage

Introduction to Procurement
What is Procurement ?
- Buyer
- Strategic Sourcing
- Category Management
- Systems & Operations
- Supplier Innovation & Productivity

Full transcript